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of <h1>Tribunal remands case on time-barred demand notice and amortisation cost inclusion</h1> <h3>M/s. Rivolta Auto Industries P. Ltd. Versus Commissioner of Central Excise, Pune-III</h3> M/s. Rivolta Auto Industries P. Ltd. Versus Commissioner of Central Excise, Pune-III - TMI Issues:1. Time limitation for issuing demand notice.2. Duty payment on tools used in manufacturing motor vehicle parts.3. Inclusion of amortisation cost in the value of manufactured parts.4. Job work under Rule 4(5)(a) of Cenvat Credit Rules, 2004.5. Remand to the original authority for fresh order.Issue 1: Time limitation for issuing demand noticeThe appellant argued that the demand is time-barred as the audit report was issued beyond one year from the date of conducting the audit. The appellant contended that the department was aware of their activities during the audit, making the notice untimely. The appellant also highlighted that they were engaged in manufacturing components under Rule 4(5)(a) of Cenvat Credit Rules, 2004, where no duty was paid. The appellant relied on legal precedents to support their argument.Issue 2: Duty payment on tools used in manufacturing motor vehicle partsThe revenue contended that the appellant received the value of tools used to manufacture motor vehicle parts, and it is established practice to include the amortisation cost of such tools in the value of manufactured goods. The revenue argued that the demand was not time-barred due to the suppression of facts by the appellant. Legal judgments were cited to support this argument.Issue 3: Inclusion of amortisation cost in the value of manufactured partsThe Tribunal found that while excise duty is payable only upon clearance of goods from the factory, the amortisation cost of tools must be included in the value of components when the tools belong to the principal manufacturer. However, in this case, the tools were used for job work under Rule 4(5)(a) of Cenvat Credit Rules, 2004, where no excise duty is payable. The Tribunal noted that the adjudicating authority did not address the job work issue, leading to a remand for a fresh order considering this aspect.Issue 4: Job work under Rule 4(5)(a) of Cenvat Credit Rules, 2004The Tribunal observed that the tools were used for manufacturing components under job work as per Rule 4(5)(a), where no excise duty is payable. Therefore, the inclusion of amortisation cost does not apply in this scenario. The matter was remanded to the original authority for a fresh order considering this finding.Issue 5: Remand to the original authority for fresh orderThe impugned order was set aside, and the appeal was allowed by way of remand to the adjudicating authority for a fresh order, taking into account the Tribunal's observations regarding job work under Rule 4(5)(a) of Cenvat Credit Rules, 2004.
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